Compare and Contrast
Law Technology News (Volume 6, Issue 6, p. 29, col. 1)
June 1999
It's June, Are You Ready for January?
by Wayne Spivak
If we were to update the plot and title to 1967 Norman Jewison movie "The Russians are Coming! The Russians are Coming!", it would read "Y2K is here! The Millennium Bug is here!".
To make it perfectly clear, it is here today, as you read this article in June 1999. Many of you are saying, "What are they talking about? It's June!" But think about it. How many matters do you have open, with balances, from December 1998 or before?
How old are your oldest computers? Are you still using DOS-based programs? What about your security system? Your copy machine? Your phone system? Each and every system you use needs to be checked for its adherence to the idiosyncrasies of Y2K.
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Other Y2K issues
Accounting systems are not the only systems that have Y2K compliance problems. Here is a short list of items that you should check on your computer system(s).
Operating Systems
Windows 3.1/95/98/NT need updates
Novell OS needs updates
UNIX/Linux are Y2K, but will fail in 2048
MAC OS is Y2K
Accounting Systems
Word Processing Software
Microsoft Word needs two service packs
Corel WordPerfect
Databases
Spreadsheet Programs
Microsoft Excel
Corel's Quatro Pro
Lotus 1-2-3
Uninterruptible Power Supply (USP) software
Disaster Recovery Systems
Tape Backup Software
Case Management Software
Motherboards
Will they automatically flip from 1999 to 2000 or will they work if you reset the date in the BIOS?
Will they properly account for the Leap Year in 2000, and for the next 10 years
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For every law firm in the land, the most important aspect of Y2K is your TBR system (Time Billing and Receivables). Let's face it, if you cannot bill your clients, you are out of business. So here is a checklist of items you should look at, and act upon, today, not next week or next month.
If your computers are not Y2K, you can purchase new ones or upgrades and get them all working in a few hours. You can call a technician to fix the phone system and the security system. These Y2K issues are simple compared to installing and implementing a new accounting system.
If your accounting system is not Y2K, be prepared to spend considerable amounts of time and money to implement a new system. (See, November 1998 Compare & Contrast for a list of current TBR systems).
When we talk about considerable amounts of money, it's because of the economic principle of supply and demand. Y2K is creating a strong demand for new accounting system implementations. Unfortunately, there are only so many qualified consultants and consulting firms. When supply is low, and demand is high, prices increase.
In the article, "Get Rich At the Last Minute, " in the May 25, 1998 issue of VAR Business, I outlined, 19 months prior to Y2K, why computer consulting companies were going to "clean-up". My predictions, unfortunately, are bearing fruit. But here are some tips to at least minimize the impact of changing accounting systems.
Plan, plan, plan and then plan for the change. If you don't fully mull over what your requirements are today and what they will be for tomorrow, you'll pick the wrong software. After you choose the new accounting system software, you'll need to develop a tactical plan to help you decide how you will convert all your data from the old system to the new. Remember, "garbage-in is garbage-out," so now's the time to clean up your data.
Plan on what types of resources are required. Items to consider are: The conversion of data, balancing of the books, and training the staff. Be sure to maintain two sets of books: the old system, which is currently working, and the new system, which may not be quite up to date.
Realistic Expectations
So, you've done some planning and you're beginning to tackle the conversion. Why do you think everything will work 100 percent of the time? It won't. That's why plans are dynamic and not static. Expect set-backs. Instead of doing every aspect of your accounting system in one fell swoop, do it by functional area. Smaller milestones, which are easier to define, make planning easier. Remember, if you're just starting this process, you may not be Y2K compliant by January 2000.
Wayne Spivak is president of Bellmore, N.Y.'s SBA*Consulting. Susan Honig is Assistant Professor at Lehman College City University, New York, in the department of Economics and Accounting. Ms. Honig contributed to the article